Systems, methods, and devices for selling transaction instruments via web-based tool

ABSTRACT

The present invention generally relates to a system and method for distributing a transaction instrument. The system includes the steps of: offering for sale, in a retail environment, the transaction instrument; selling a selected transaction instrument; communicating with the issuer of the transaction instrument via an internet accessible web site, and enabling the use of the transaction instrument. The transaction instrument may be, for example, an open pre-paid card. The distribution of the transaction instrument may also include the step of sending a message, through the web site, in substantially real time, causing the pre-paid transaction instrument to be funded but not activated until later through an interactive voice response system, for example. In another example, an associated transaction account may be funded and activated at the time of distribution. Furthermore, an issuer system may be suitably configured to leverage existing Travelers Cheque infrastructure for inventory and related processes.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of and claims priority to U.S. patentapplication Ser. No. 10/905,888 (now U.S. Pat. No. 7,191,939), entitled“SYSTEMS, METHODS, AND DEVICES FOR SELLING TRANSACTION INSTRUMENTS VIAWEB-BASED TOOL,” filed on Jan. 25, 2005. The '939 Patent claims priorityto, and the benefit of, U.S. Provisional Application Ser. No.60/552,842, entitled “SYSTEM, METHOD FOR PRE-PAID CARD RETAILDISTRIBUTION,” filed Mar. 12, 2004; U.S. Provisional Application Ser.No. 60/553,781, entitled “SYSTEM, METHOD FOR DISTRIBUTION OF GIFTCARDS,” filed Mar. 17, 2004; and U.S. Provisional Application Ser. No.60/522,955, entitled “PREPAID CARD IN-PERSON RETAIL DISTRIBUTIONINVENTORY MANAGEMENT PROCESS,” filed Nov. 24, 2004, which areincorporated herein by reference.

FIELD OF INVENTION

The present invention generally relates to transaction accounts, andmore particularly, to systems and methods for facilitating thedistribution of transaction instruments.

BACKGROUND OF THE INVENTION

Consumers may use a transaction account, which may be associated with anaccount number and/or transaction instrument (e.g., charge card, creditcard, debit card, gift card, etc.), as a form of payment or foridentification in various transactions. Transaction instruments aredesirable for a number of reasons such as, for example, utilizing atransaction instrument associated with a stored value (e.g., pre-paid)card may be a safe and convenient way to avoid carrying or handling cashand loose change. Also, it is often convenient to give pre-paid cards asgifts or to use pre-paid cards to pay for transactions while traveling.

Stored value cards are forms of transaction instruments associated withtransaction accounts, wherein the stored value cards provide cashequivalent value that may be used within an existing payment/transactioninfrastructure. Stored value cards are frequently referred to as gift,pre-paid or cash cards, in that money is deposited in the accountassociated with the card before use of the card is allowed. If acustomer deposits ten dollars of value into the account associated withthe card, the card may be used for payments up to ten dollars.

“Open cards” are cards that are generally accepted at differentmerchants.

Examples of open cards include American Express®, Visa®, and Discover®,MasterCard® cards, which may be used at many different retailers andother businesses. In contrast, “closed cards” are cards that may berestricted to use in a particular store or within a particular chain ofa stores. One example of a closed card is a pre-paid gift card that mayonly be purchased at, and only be accepted at, a clothing retailer, suchas The Gap®.

In distributing open cards, additional security issues often existcompared to distributing closed cards. For example, open cards may beused in more places and through a variety of authentication systems.Thus, issuer's of open cards typically do not sell those cards as offthe shelf items. In fact, open cards are generally distributed throughthe mail. Another method of distributing an open card involves selling adummy ‘off-the shelf’ card to a customer, whereupon a working card islater mailed to the customer. In both cases, the mailed card isgenerally pre-funded or pre-approved, and for security reasons, therecipient typically calls an interactive voice response (“IVR”) systemto activate the card. However, the delay caused by the mailing processhinders the distribution of transaction instruments.

Banks may also distribute cards that are pre-funded and then activatedvia IVR, but these cards are generally kept securely behind the counterand not within the customer's reach. However, it is also desirable todistribute transaction instruments through additional channels otherthan banks. For example, it may be convenient for consumers to purchasetransaction instruments while conducting other transactions with athird-party, such as a merchant. Similarly, an individual may wish topurchase a pre-paid card in conjunction with purchasing goods andservices. In this regard, retailers such as The Gap®, sell privatelabel, closed pre-paid cards wherein a message is transmitted to a hostcomputer from the purchasing location upon purchase that funds andactivates the card.

In addition, limitations currently exist in the amount and types ofinformation that may be communicated between distributors of transactioninstruments and the issuer of the transaction instruments. Furthermore,such communications are often delayed to a point that the usefulness ofthe communications is reduced. In one example, the sale of transactioninstruments is communicated to the issuer through batch processes at theclose of a business day.

Thus, although various systems exist for distributing transactioninstruments, various funding systems have been used, and various methodsexist for activating a transaction account, additional systems andmethods are desired to facilitate the distribution of transactioninstruments. Furthermore, a need exists for systems and methods thatenable a consumer to more conveniently obtain a transaction instrumentsuch as a stored value card.

SUMMARY OF THE INVENTION

The present invention generally relates to a system and method fordistributing a transaction instrument. The method includes the steps of:offering for sale, in a retail or mall environment, the transactioninstrument; selling a customer selected transaction instrument;communicating with the issuer of the transaction instrument via aninternet accessible web site, and enabling the use of the transactioninstrument. The transaction instrument may be, for example, an openpre-paid card. The distribution of the transaction instrument may alsocomprise the step of sending a message, through the web site, insubstantially real time, causing the pre-paid transaction instrument tobe funded but not activated until later through an interactive voiceresponse system, for example. In another exemplary embodiment, themessage sent through the web site may cause the pre-paid transactioninstrument to be funded and activated at approximately the time ofpurchase. In accordance with further exemplary embodiments, an issuersystem is configured to leverage existing Travelers Chequeinfrastructure for inventory and related processes.

BRIEF DESCRIPTION OF THE DRAWINGS

A more complete understanding of the present invention may be derived byreferring to the detailed description and claims when considered inconnection with the Figures, wherein like reference numbers refer tosimilar elements throughout the Figures, and:

FIG. 1 illustrates a block diagram overview of an exemplary transactioninstrument distribution system;

FIG. 2 illustrates a flow diagram showing an exemplary transactioninstrument distribution method;

FIG. 3 illustrates an exemplary financial transaction instrument;

FIG. 4 illustrates a block diagram overview of an exemplary TravelersCheque infrastructure and an exemplary transaction card infrastructure;

FIG. 5 illustrates a block diagram of an exemplary financial transactioninstrument distribution system including an exemplary web tool;

FIG. 6 illustrates a flow diagram showing an exemplary reverse inventorymethod; and

FIG. 7 illustrates a block diagram of an exemplary distribution channel.

DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS

While the exemplary embodiments herein are described in sufficientdetail to enable those skilled in the art to practice the invention, itshould be understood that other embodiments may be realized and thatlogical and mechanical changes may be made without departing from thespirit and scope of the invention. Thus, the following detaileddescription is presented for purposes of illustration only and not oflimitation.

In general, systems, methods, and devices are suitably configured tofacilitate the distribution of a transaction instrument through adistributor (defined below), e.g., a merchant, mall retailer, and/or thelike. In one exemplary embodiment of the present invention, distributionof transaction instruments may be facilitated through a distributoraccessible web based interface or ‘web tool’ that is configured to beused at the point of distribution of the transaction instrument.Distribution of transaction instruments may be further facilitated bysending, via the web tool, a “fund but do not activate” message to theissuer (defined below) when the transaction instrument is distributed tothe consumer. Distribution of transaction instruments may also befacilitated by using pre-existing Travelers Cheque and/or transactionaccount infrastructure(s) to process information communicated (eitherdirectly or indirectly) from the distributor web tool to thepre-existing infrastructure and/or to provide services related to thetransaction account.

A general exemplary system configuration may include, with reference toFIG. 1, a transaction instrument distribution system 100 which comprisesan issuer system 110 and a distributor system 130. Transactioninstrument distribution system 100 may also comprise a third-partypartner system 120. Issuer system 110 is any person, entity, softwareand/or hardware suitably configured to issue a transaction instrument toa consumer 140 through a distributor 130 and/or a third-party partner120. Distribution system 130 is any person, entity, software and/orhardware suitably configured to distribute the transaction instrument toconsumer 140. For example, distribution system 130 may be a merchant.Moreover, distribution system 130 may be, for example, a retail mallmerchant. Furthermore, third-party partner system 120 may serve as anintermediary between distribution system 130 and issuer system 110.Consumer 140 may use the transaction instrument with various merchants130, automated teller machines (“ATMs”) 150, and/or the like. Thus,issuer system 110 may be suitably configured to communicate withthird-party partner system 120, merchant system 130, consumers 140,and/or ATMs 150. In these examples, communications between any of thesecomponents may take place in various manners, for example, via a network170, or via other modes of communication.

The systems and/or components of the systems discussed herein may alsoinclude one or more host servers or other computing systems including aprocessor suitably configured to process digital data, a memory coupledto the processor for storing digital data, an input digitizer coupled tothe processor for inputting digital data, an application program storedin the memory and accessible by the processor for directing processingof digital data by the processor, a display coupled to the processor andmemory for displaying information derived from digital data processed bythe processor and a plurality of databases, the databases includingdistribution data, customer data, merchant data, financial institutiondata and/or like data that could be used in association with the presentinvention. As those skilled in the art may appreciate, a computer mayalso include an operating system (e.g., Windows NT, 95/98/2000, Linux,Solaris, etc.) as well as various conventional support software anddrivers typically associated with computers.

In one exemplary embodiment of the present invention, transactioninstrument distribution system 100 is suitably configured to facilitatedistribution of transaction instruments through in-person marketingmethods. For example, a transaction instrument, such as an open pre-paidcard, may be offered by a distributor, e.g., a merchant. The merchantmay present the open pre-paid card, for example, by hanging the card ona rack near the check out stand. In this example, the open, pre-paidcard is accessible to the customers who may select (i.e., physicallyobtain) one or more pre-denominated cards, and purchase these cards withthe rest of their purchases. Displaying the pre-paid card in a readilyaccessible manner may thus facilitate convenient acquisition of openpre-paid cards by consumers, and may therefore facilitate distributionof the pre-paid cards. In another embodiment, the merchant may keep thecards behind the counter or otherwise maintain the cards in a manner notdirectly accessible by customers.

Although frequently described herein as an open pre-paid card which isassociated with a transaction account, a transaction instrument, as usedherein, may be associated with an open account or a closed accountsystem. The transaction instrument may also exist in a non-physicalembodiment. For example, a transaction instrument may be distributed innon-physical embodiments such as an account number, frequent flyeraccount, telephone calling account, and/or the like. Furthermore, aphysical embodiment of a transaction instrument may be distributed as acharge card, credit card, debit card, loyalty card, pre-paid card,diner's card, phone card, transponder, and/or the like.

Furthermore, transaction accounts may be associated with variousapplications that allow the customers to participate in variousprograms, such as, for example, loyalty programs. A loyalty program mayinclude one or more loyalty accounts. Exemplary loyalty programs includefrequent flyer miles, on-line points earned from viewing or purchasingproducts at websites on-line, and programs associated with diner'scards, charge cards, credit cards, debit cards, hotel cards, and/or thelike. Generally, the user is both the owner of the transaction accountand the participant in the loyalty program; however, this association isnot necessary. For example, a participant in a loyalty program may giftloyalty points to a user who pays for a purchase with his owntransaction instrument, but uses the gifted loyalty points instead ofpaying the monetary value.

In accordance with another aspect of the present invention, thetransaction instrument may be distributed via any suitable distributiontechnique. For example, the transaction instrument may be purchased bythe distributor and resold to a consumer. In another exemplaryembodiment, however, the transaction instrument may be consigned to thedistributor who, upon sale to a consumer, pays the issuer. Otherdistribution techniques may also be employed. For example, transactioninstruments may be distributed for free, e.g., as palt of a promotionalactivity.

In one exemplary embodiment, the transaction instrument comprises anopen pre-paid card that is un-funded and not activated when on displayby a merchant. The card is purchased through the web tool as describedherein. In a first example, the card is funded upon purchase by aconsumer and enabled, i.e. activated, for example, via an IVR system. Ina second example, the web site is configured to send a message, directlyor indirectly, to the issuer, wherein the message is configured to fundand activate the card. The open card may be used at a variety ofmerchants. Thus, transaction instrument distribution system 100facilitates convenient distribution of transaction instruments.

Although described as a merchant system herein, in general, distributorsystem 130 may be any service provider, retailer, mall, financialinstitution, travel agency, or other entity that performs in-persondistribution of a transaction instrument. The term ‘retail environment’should be construed broadly to encompass any environment where productis accessible to the public for the public's selection, such as whereproduct is accessibly displayed on counters, shelves, display racks,and/or the like. In accordance with various exemplary embodiments of thepresent invention, distributor system 130 is suitably configured tooffer transaction instruments to consumers in a manner whereby theconsumers may physically select/obtain the transaction instrument. Forexample, the transaction instrument may be a card and the card may beassociated with a package. In this example, the packaged card may bedisplayed by hanging the package on a rack display. The packaged cardmay also be displayed by placing the package on a display shelf, in avending machine, or through other suitable display techniques. Theseexemplary methods of displaying the package facilitate selection by aconsumer of the package. The consumer may then begin the process ofacquiring ownership of the package, for example, by picking up thepackage and adding it to their shopping cart. In other exemplaryembodiments, the transaction instrument is distributed withoutpackaging.

Although the present invention contemplates the sale of transactioninstruments to consumer 140, in other embodiments, transactioninstruments may be distributed to merchants or consumers for free. Inaccordance with other aspects of the present invention, distributorsystem 130 may process purchases and communicate transaction informationwith issuer 110 upon sale of an item. For example, distributor system130 may sell DVD's, produce, toys, food, hardware, and/or the like, andmay communicate (directly or indirectly) with the issuer of a chargecard, credit card, a pre-paid card, and/or the like to reconcile paymentfor these purchases.

In general, distributor system 130 is similarly configured tocommunicate with issuer system 110 in connection with the distributionof the transaction instrument. The information communicated may varydepending on the distribution technique used, the type of transactioninstrument, the security systems in place, and/or the like. In oneexemplary embodiment, distributor system 130 comprises hardware and/orsoftware, such as a cash register, having a point of sale deviceintegrated therein. Distributor system 130 may have a computing centersuch as a mainframe computer. However, the computing center ofdistributor system 130 may be implemented in other forms, such as apersonal computer, a mini-computer, a PC server, a network set ofcomputers, or the like.

The computer is suitably configured to receive input identifying thetransaction instrument to be distributed. For example, the computer maybe suitably configured to scan a bar code associated with thetransaction instrument and receive information identifying the cardbeing purchased. The computer may further be suitably configured tocompare the identifying information to inventory recorded in a database,to receive or look up the sales price, and/or to calculate the salesprice associated with the transaction instrument.

In one embodiment, for example, a third-party partner account number isscanned from the package holding a pre-paid card and the purchase priceis looked up from inventory. The third-party partner account number, thepurchase price of the card, and the merchant's own identification numbermay be communicated to the third party partner who may convert thethird-party partner account number to the issuer's corresponding accountnumber and forward this information to the issuer.

Furthermore, the merchant computer may be suitably configured to send aFund/Init or Fund/Activate message (as defined herein) to the issuer.The Fund/Init or Fund/Activate message may be a message that requestsapproval of sale of the transaction instrument. The Fund/Init orFund/Activate message may, in one embodiment, be communicated along withthe account number, price, and merchant number information justdescribed, and may also pass through the third-party partner system. Thecomputer may also be suitably configured to receive an‘approved/authorized’ message that authorizes the sale of the pre-paidcard. Furthermore, the Fund/Init or Fund/Activate message may be amessage that causes the transaction account to be funded upondistribution of the related transaction instrument. Moreover, theFund/Init or Fund/Activate message may be sent, substantially in realtime, i.e. at about the time of the distribution/sale of the transactioninstrument. In addition, the Fund/Init message may be a message that isconfigured to cause the transaction account to not be activated at thetime of distribution/sale of the transaction instrument. However, theFund/Activate message may be a message that is further configured tocause the transaction account to be activated upon distribution/sale ofthe transaction instrument.

With momentary reference to FIG. 5, a distributor computer 531, operatedby distributor 530, may be configured to access a web tool 550comprising a web server 551, an application server 552, a databaseserver 553, and an associated database 554. Web tool 550 may beassociated with issuer system 110, and configured to serve Lip a webpage to distributor 530. Through the web page, the distributor systemmay be able to track inventory by card number, by serial number, bypackage number (such as case, sleeve, shipment number, and/or the like),and/or similar tracking methods. The distributor system may beconfigured to track inventory on database 554 that is fed from theissuer system database (e.g., Global Pre-paid Platform ‘GPP’ 513). Inthis embodiment, the web tool may be configured to limit sales totransaction instruments that are listed in database 554. In anotherexemplary embodiment, inventory may be tracked via a remote database,i.e., an issuer system database, or the like. The distributor system mayfurther look up sales prices, calculate sales prices or commissions,send Fund/Init or fund/activate messages, and/or receive‘approved/authorized’ or ‘declined/deferred’ messages through the issuerweb page. Such messages and actions may be performed via InternationalStandards Organization (“ISO”) messaging. Furthermore, such messages andactions may be communicated utilizing the internet connectivity betweenthe application and the issuer system. In another example, thedistributor system web site may be configured to link directly to theissuer system. The computer may be located at the point of distributionof the transaction instrument. Also, the computer may be configured suchthat distribution information may be manually entered into fields on theweb page, or automatically entered via scanning, swiping a magneticstripe through a reader, look-up tables and/or like methods ofpopulating fields on a web page.

Distributor system 130 may also communicate other information withissuer system 110 (directly or indirectly). In one exemplary embodiment,the information communicated includes the consumer name, an accountnumber, a sequential number, the date of distribution of the transactioninstrument, the time of distribution, the place of distribution, thetype of transaction instrument distributed, and/or the like. Thecommunicated information may be useful for the issuer and distributor toreconcile amounts owed between themselves, to track inventory, to limitfraud, to activate the transaction account, and/or to provide additionalservices. This other information may be sent at the time of thepurchase, or as a batch process on a periodic basis. The distributioninformation may, for example, be communicated via batch processing (seee.g., 560 of FIG. 5) that is performed on a daily basis, in real time,and/or at some other appropriate interval. The distribution informationmay be communicated to issuer 110 directly in electronic format, e.g.,via a web page, or indirectly in a verbal, or printed format that lateris entered in electronic format into issuer system 110.

The distributor system 130 may include a computer (e.g., 531) that maybe suitably configured to access a suitable website or otherInternet-based graphical user interface that is accessible by users. Inanother example, the distributor system 130 may include a computer thatmay be suitably configured to access a suitable website or otherInternet-based graphical user interface that is provided by issuersystem 110. In one embodiment, the Internet Information Server,Microsoft Transaction Server, and Microsoft SQL Server, are used inconjunction with the Microsoft operating system, Microsoft NT web serversoftware, a Microsoft SQL database system, and a Microsoft CommerceServer. Additionally, components such as Access or SQL Server, Oracle,Sybase, Informix MySQL, Intervase, etc., may be used to provide anADO-compliant database management system. The term “web page” as it isused herein is not meant to limit the type of documents and applicationsthat might be used to interact with the user. For example, a typicalwebsite might include, in addition to standard HTML documents, variousforms, Java applets, Javascript, active server pages (ASP), commongateway interface scripts (CGI), extensible markup language (XML),dynamic HTML, cascading style sheets (CSS), helper applications,plug-ins, and/or the like.

Issuer system 110 may include any software, hardware, financialinstitution, credit card company, bank, business, and/or the like thatis capable of issuing a transaction instrument. Issuer system 110 mayalso be suitably configured to receive a Fund/Init message, process arequest for sale of a transaction instrument, and/or return anauthorization/approval message. Furthermore, issuer system 110 mayinclude an internet accessible web site configured to facilitatedistribution of transaction instruments.

In accordance with exemplary embodiments, issuer system 110 may includea production system for producing physical embodiments of transactioninstruments and/or for creating the associated transaction accounts. Inaddition, issuer system 110 may comprise systems that are configured totrack inventory, receive information from distributor system 130,receive information from third-party partner system 120, identify fraud,replace lost transaction instruments, send commission payments, receiveamounts owed, perform accounting, and/or the like for transactioninstruments and/or associated transaction accounts.

By way of example, issuer system 110 may be a financial institution thatissues a pre-paid card to distribution system 130, e.g., a merchant. Forexample, issuer system may consign the transaction instrument to themerchant. In this example, issuer system 110 may further pay acommission to the distributor and/or receive payment from thedistributor.

In another exemplary embodiment, issuer system 110 is configured with,for example, a card authorization system, that may be suitablyconfigured to receive a message from a point of sale device atdistributor system 130. The card authorization system may be suitablymodified to recognize a Fund/Init message from distributor system 130.For example, a Fund/Init message may be similar to a standardtransaction message with one or more fields changed to indicate that acustomer desires to acquire a particular transaction instrument. Thefield(s) that are changed may comprise, for example, Message TypeIndicator, Processing Code, and/or Function Code. Upon recognizing theFund/Init message, the card authorization system may be suitablyconfigured to send a message to a processing system. For example, withreference to a stored value card, a message may be passed to a storedvalue card processing system (e.g., SVCAP).

The stored value processing system may comprise a logic system that cancheck to see if the card status is ‘already sold’, and/or whether thecard status is ‘at the merchant’.

In one exemplary embodiment, the stored value processing system mayquery an appropriate database to check the card status. Furthermore, thestored value processing system may, upon determining that the card canbe sold, (1) adjust the card status in the database to ‘sold’, and/or(2) send an authorization signal back, through the card authorizationsystem, to the point of sale device.

In another exemplary embodiment, the internet accessible website (webtool) may be configured to interact with the card authorization system(e.g., 517). The web site may utilize an internet connection ordedication network connection specifically routed to the authorizationnetwork of the issuer. For example, the website may be given a specificport to access on an internet enabled Stratus box (e.g., 511) that isenabled for only that distributor application. Furthermore, othermethods may suitably be used to communicate between the website and cardauthorization system 517. Thus, a message may be communicated from theweb site to card authorization system 517 requesting authorization todistribute the transaction instrument. The card authorization system maycommunicate with, for example, SVCAP 512 which may determine ifauthorization is appropriate, adjust the status of the transactioninstrument to ‘sold’, and send an authorization signal back, through thecard authorization system to the web site. The web site may further beconfigured to display an ‘approved/authorized’ message or a‘declined/deferred’ message. The web site may be further configured tofund a transaction instrument for a pre-denominated amount and/or for avariable load amount.

In one exemplary embodiment, and with momentary reference to FIG. 5,issuer system 110 may be further configured with an interactive voiceresponse system (“IVR”) 514 that may be suitably configured to receive arequest from a customer to activate a purchased transaction instrument(e.g., card). The IVR may be suitably configured to check an appropriatedatabase and determine if the status of the card is “sold”. The IVR mayalso be configured to inform the customer, if the card status happens tobe ‘sold’, that the card is activated and/or to activate the card. Forexample, the card may be activated by adjusting the status of the cardin a suitable database.

In this manner, issuer system 110 may be configured to facilitate a userpurchasing, for example, a pre-paid card and activating the pre-paidcard right away. In one embodiment, transaction instrument distributionsystem 100 may be configured to facilitate activation (and thus use) ofa transaction instrument within seconds after the transaction instrumentis distributed (e.g., purchased). In other embodiments, the transactioninstrument may be used within less than 5 minutes of the purchase. Infurther exemplary embodiments, the transaction instrument may be used toconclude purchases made at the time of the purchase of the transactioninstrument. Also, third-party partner system 120 may provide all or aportion of the internet accessible web site described in connection withissuer system 110. In this embodiment, information transmitted throughthe web site from the distributor or the issuer is transmitted throughthe third-party intermediary.

Issuer system 110 may also include, for example, an established systemfor creating Travelers Cheques, for delivering the Travelers Cheques todistributors, and for tracking inventory, preventing fraud, replacinglost transaction instruments, sending commission payments, receivingamounts owed, performing accounting, and/or the like. These establishedTravelers Cheque infrastructures may, in accordance with one aspect ofthe present invention, be leveraged to perform similar functions for thedistribution of transaction instruments. Although described herein asTravelers Cheque infrastructures, it should be understood that issuersystem 110 may include any pre-existing inventory and financialsettlement processing system, which operates using serial number logic,and that a Travelers Cheque system is merely one example of such asystem. Thus, issuer system 110 may, in accordance with one aspect ofthe present invention, avoid the creation of new systems that facilitatethis new method of distributing transaction instruments. Therefore,issuer system 110 may leverage a Travelers Cheque infrastructure toreceive information received from merchant system 130 and leverage aTravelers Cheque and/or transaction account infrastructure to processthe information and/or to provide other services related to the pre-paidcard. For additional information related to leveraging a TravelersCheque infrastructure, see for example, U.S. Non-Provisional patentapplication Ser. No. 10/707,779, filed Jan. 12, 2004, entitled “SYSTEMS,METHODS, AND DEVICES FOR SELLING TRANSACTION ACCOUNTS”, which isincorporated herein by reference.

In various exemplary embodiments, issuer system 110 may distributetransaction instruments to consumers 140 using an intermediarythird-party partner system 120. Third-party partner system 120 may besuitably configured to perform many of the tasks discussed withreference to issuer system 110 and/or distributor system 130.Furthermore, in this exemplary embodiment, merchant 130 may be suitablyconfigured to send the Fund/Init message to third-party partner system120 and to receive an approved/authorized message from partner system120. Similarly, issuer system 110 may be suitably configured to receivea Fund/Init message from partner system 120 and to provide anapproved/authorized message to partner system 120. In accordance with anexemplary embodiment, partner system 120 may also comprise a databasefor converting the identification number associated with the transactioninstrument from a third party partner's number to the issuer's number.

As used herein, the terms “user”, “end user”, “consumer”, “customer” or“participant” may be used interchangeably with each other, and eachshall mean any person, entity, machine, hardware, software, business,issuer system, and/or distributor system. A user may acquire by gift,purchase, or the like, a transaction instrument, for example, an openpre-paid card, and may use that card at different merchants to completea purchase. Also, each user may be equipped with a computing system tofacilitate online commerce transactions. For example, the user may havea computing unit in the form of a personal computer, although othertypes of computing units may be used including laptops, notebooks, handheld computers, set-top boxes, and/or the like. The user computer may bein a home or business environment with access to a network. In anexemplary embodiment, access may be through the Internet through acommercially available web-browser software package.

Furthermore, the terms “business” or “merchant” may be usedinterchangeably with each other and shall mean any person, entity,distributor system, software and/or hardware that is a provider, brokerand/or any other entity in the distribution chain of goods or services.For example, the merchant may be a grocery store, an on-line merchant,and/or the like. With regard to use of the open transaction instrument,the user may communicate with the merchant in person (e.g., at the boxoffice), telephonically, or electronically (e.g., from a user computervia an internet). During the interaction, the merchant may offer goodsand/or services to the user. The merchant may also offer the user theoption of paying for the acquisition using a transaction instrument.Furthermore, the transaction instrument may be used by the merchant as aform of identification of the user. The merchant may have a computingunit implemented in the form of a computer-server, although otherimplementations are possible.

In general, the transaction instrument may be used for transactions muchlike other transaction instruments. Communication between the userand/or merchant and the system of the present invention is accomplishedthrough any suitable communication means, such as, for example, atelephone network, Intranet, Internet, point of interaction device(point of sale device, personal digital assistant, cellular phone,kiosk, etc.), online communications, off-line communications, wirelesscommunications, and/or the like. One skilled in the art may alsoappreciate that, for security reasons, any databases, systems, orcomponents of the present invention may consist of any combination ofdatabases or components at a single location or at multiple locations,wherein each database or system includes any of various suitablesecurity features, such as firewalls, access codes, encryption,de-encryption, compression, decompression, and/or the like.

It may be appreciated that many applications of the present inventioncould be formulated. One skilled in the art may appreciate that anetwork may include any system for exchanging data or transactingbusiness, such as the Internet, an intranet, an extranet, WAN, LAN,satellite communications, and/or the like. It is noted that the networkmay be implemented as other types of networks, such as an interactivetelevision (ITV) network. The users may interact with the system via anyinput device such as a keyboard, mouse, kiosk, personal digitalassistant (e.g., Palm Pilot®), handheld computer, cellular phone and/orthe like. Similarly, the invention could be used in conjunction with anytype of personal computer, network computer, workstation, minicomputer,mainframe, or the like running any operating system such as any versionof Windows, Windows NT, Windows2000, Windows 98, Windows 95, MacOS,OS/2, BeOS, Linux, UNIX, Solaris or the like. Moreover, although theinvention is frequently described herein as being implemented withTCP/IP communications protocols, it may be readily understood that theinvention could also be implemented using IPX, Appletalk, IP-6, NetBIOS,OSI or any number of existing or future protocols. Moreover, the systemmay contemplate the use, sale or distribution of any goods, services orinformation over any network having similar functionality describedherein.

The computing units may be connected with each other via a datacommunication network. The network may be a public network and assumedto be insecure and open to eavesdroppers. In the illustratedimplementation, the network may be embodied as the internet. In thiscontext, the computers may or may not be connected to the internet atall times. For instance, the customer computer may employ a modem tooccasionally connect to the internet, whereas the bank computing centermight maintain a permanent connection to the internet. Specificinformation related to the protocols, standards, and applicationsoftware utilized in connection with the Internet may not be discussedherein. For further information regarding such details, see, forexample, DILIP NAIK, INTERNET STANDARDS AND PROTOCOLS (1998); JAVA 2COMPLETE, various authors, (Sybex 1999); DEBORAH RAY AND ERIC RAY,MASTERING HTML 4.0 (1997). LOSHIN, TCP/IP CLEARLY EXPLAINED (1997). Allof these texts are hereby incorporated by reference.

The systems may be suitably coupled to the network via data links. Avariety of conventional communications media and protocols may be usedfor data links. For example, a connection to an Internet ServiceProvider (ISP) over the local loop as is typically used in connectionwith standard modem communication, cable modem, Dish networks, ISDN,Digital Subscriber Line (DSL), or various wireless communicationmethods. The merchant system might also reside within a local areanetwork (LAN) that interfaces to the network via a leased line (T1, D3,etc.). Such communication methods are well known in the art and arecovered in a variety of standard texts. See, e.g., GILBERT HELD,UNDERSTANDING DATA COMMUNICATIONS (1996), hereby incorporated byreference.

The distributor, third-party partner, and/or the issuer may beinterconnected via a second network and/or a third network, eachreferred to as a payment network. The payment network which may be partof certain transactions represents existing proprietary networks thatpresently accommodate transactions for charge cards, credit cards, debitcards, and other types of financial/banking cards. The payment networkis a closed network that is assumed to be secure from eavesdroppers.Exemplary transaction networks may include the American Express®,VisaNet® and the Veriphone® networks.

Any databases discussed herein may be any type of database, such asrelational, hierarchical, graphical, object-oriented, and/or otherdatabase configurations. Common database products that may be used toimplement the databases include DB2 by IBM (White Plains, N.Y.), variousdatabase products available from Oracle Corporation (Redwood Shores,Calif.), Microsoft Access or Microsoft SQL Server by MicrosoftCorporation (Redmond, Wash.), or any other suitable database product.Moreover, the databases may be organized in any suitable manner, forexample, as data tables or lookup tables. Each record may be a singlefile, a series of files, a linked series of data fields or any otherdata structure. Association of certain data may be accomplished throughany desired data association technique such as those known or practicedin the art. For example, the association may be accomplished eithermanually or automatically. Automatic association techniques may include,for example, a database search, a database merge, GREP, AGREP, SQL,and/or the like. The association step may be accomplished by a databasemerge function, for example, using a “key field” in pre-selecteddatabases or data sectors.

More particularly, a “key field” partitions the database according tothe high-level class of objects defined by the key field. For example,certain types of data may be designated as a key field in a plurality ofrelated data tables and the data tables may then be linked on the basisof the type of data in the key field. In this regard, the datacorresponding to the key field in each of the linked data tables ispreferably the same or of the same type. However, data tables havingsimilar, though not identical, data in the key fields may also be linkedby using AGREP, for example. In accordance with one aspect of thepresent invention, any suitable data storage technique may be utilizedto store data without a standard format. Data sets may be stored usingany suitable technique, including, for example, storing individual filesusing an ISO/IEC 7816-4 file structure; implementing a domain whereby adedicated file is selected that exposes one or more elementary filescontaining one or more data sets; using data sets stored in individualfiles using a hierarchical filing system; data sets stored as records ina single file (including compression, SQL accessible, hashed via one ormore keys, numeric, alphabetical by first tuple, etc.); block of binary(BLOB); stored as ungrouped data elements encoded using ISO/IEC 7816-6data elements; stored as ungrouped data elements encoded using ISO/IECAbstract Syntax Notation (ASN.1) as in ISO/IEC 8824 and 8825; and/orother proprietary techniques that may include fractal compressionmethods, image compression methods, etc.

In one exemplary embodiment, the ability to store a wide variety ofinformation in different formats is facilitated by storing theinformation as a Block of Binary (BLOB). Thus, any binary informationmay be stored in a storage space associated with a data set. Asdiscussed above, the binary information may be stored on the financialtransaction instrument or external to but affiliated with the financialtransaction instrument. The BLOB method may store data sets as ungroupeddata elements formatted as a block of binary via a fixed memory offsetusing either fixed storage allocation, circular queue techniques, orbest practices with respect to memory management (e.g., paged memory,least recently used, etc.). By using BLOB methods, the ability to storevarious data sets that have different formats facilitates the storage ofdata associated with the financial transaction instrument by multipleand unrelated owners of the data sets. For example, a first data setwhich may be stored may be provided by a first issuer, a second data setwhich may be stored may be provided by an unrelated second issuer, andyet a third data set which may be stored, may be provided by an thirdissuer unrelated to the first and second issuer. Each of these threeexemplary data sets may contain different information that is storedusing different data storage formats and/or techniques. Further, eachdata set may contain subsets of data which also may be distinct fromother subsets.

As stated above, in various embodiments of the present invention, thedata may be stored without regard to a common format. However, in oneexemplary embodiment of the present invention, the data set (e.g., BLOB)may be annotated in a standard manner when provided for manipulating thedata onto the financial transaction instrument. The annotation maycomprise a short header, trailer, or other appropriate indicator relatedto each data set that is suitably configured to convey informationuseful in managing the various data sets. For example, the annotationmay be called a “condition header”, “header”, “trailer”, or “status”,herein, and may comprise an indication of the status of the data set ormay include an identifier correlated to a specific issuer or owner ofthe data. In one example, the first three bytes of each data set BLOBmay be suitably configured or configurable to indicate the status ofthat particular data set; e.g., LOADED, INITIALIZED, READY, BLOCKED,REMOVABLE, or DELETED. Subsequent bytes of data may be used to indicatefor example, the identity of the issuer, user, transaction/membershipaccount identifier or the like. Each of these condition annotations arefurther discussed herein.

The data set annotation may also be used for other types of statusinformation as well as various other purposes. For example, the data setannotation may include security information establishing access levels.The access levels may, for example, be suitably configured to permitonly certain individuals, levels of employees, companies, or otherentities to access data sets, or to permit access to specific data setsbased on the transaction, merchant, issuer, user or the like.Furthermore, the security information may restrict/permit only certainactions such as accessing, modifying, and/or deleting data sets. In oneexample, the data set annotation indicates that only the data set owneror the user are permitted to delete a data set, various identifiedmerchants are permitted to access the data set for reading, and othersare altogether excluded from accessing the data set. However, otheraccess restriction parameters may also be used allowing various entitiesto access a data set with various permission levels as appropriate.

The data, including the header or trailer may be received by a standalone interaction device suitably configured to add, delete, modify, oraugment the data in accordance with the header or trailer. As such, inone preferred embodiment, the header or trailer is not stored on thetransaction instrument along with the associated issuer-owned data butinstead the appropriate action may be taken by providing to thetransaction instrument user at the stand alone device, the appropriateoption for the action to be taken. However, the present inventioncontemplates a data storage arrangement wherein the header or trailer,or header or trailer history, of the data is stored on the transactioninstrument in relation to the appropriate data.

One skilled in the art will also appreciate that, for security reasons,any databases, systems, devices, servers or other components of thepresent invention may consist of any combination thereof at a singlelocation or at multiple locations, wherein each database or systemincludes any of various suitable security features, such as firewalls,access codes, encryption, decryption, compression, decompression, and/orthe like.

The foregoing system components may be suitably configured forperforming the following method which may facilitate the distribution ofa transaction instrument. With reference to FIG. 2, an exemplary method200 may comprise one or more of the following steps: providing atransaction instrument to a distributor (step 210), offering thetransaction instrument (e.g., at a retail establishment) (step 215),distributing the transaction instrument to customers (step 220), sendinga Fund/Init message (step 225), sending distribution information to theissuer (step 230), and/or processing the distribution information via,for example, a Travelers Cheque infrastructure (step 240).

In accordance with various exemplary embodiments of the presentinvention, providing the transaction instrument to a distributor (step210) may include the step of creating the transaction instrument (step211). Creation of the transaction instrument may include both electronicand physical activities. For example, a card may be created physicallyand/or the related account created electronically. The transactionaccount may be created electronically by, for example, creating anaccount number that is associated with the transaction instrument. Theaccount number may be, for example, a credit card number or other numberas described herein. For security reasons, the account number may be arandom number and/or the account number may also include routinginformation prior to the random number. The account number may beassociated with other account specific information in a database, lookup table and/or the like. For example, in a stored value account, theaccount may be suitably configured to be worth a particular number ofminutes, a pre-determined value, a specific reward, and/or the like.

In addition to the account number, a serial number or any otheridentifier may be associated with the transaction instrument and/ortransaction account. In accordance with various exemplary embodiments,the serial number is a sequential number. The sequential number may,among other things, facilitate the tracking of inventory.

With regard to transaction instruments involving a physical transactioninstrument, the financial transaction instrument may comprise, forexample, a magnetic stripe card, smart card, bar code card, transponder,and/or the like. Issuer system 110 may provide a card account number anda serial number to a manufacturer that produces the physical transactioninstrument, encodes the instrument, and/or packaging for the transactioninstrument. The manufacturer may create, for example, a card. Themanufacturer may further package the card by inserting the card into anenvelope.

The packaged transaction instruments may be shipped to third-partypartner systems 120 and/or distribution centers which may provide thepackaged transaction instruments to distributor system 130. Providingthe transaction instrument (step 210), in one exemplary embodiment,includes consigning the transaction instrument to the distributor. Forexample, upon delivery, a distributor may sign a receipt acknowledgingresponsibility for the delivered set of pre-paid cards which may beindividually identified on the receipt. This receipt may be mailed,faxed, or electronically transmitted to the issuer to confirm receipt ofthe pre-paid cards. In other exemplary embodiments, providing thetransaction instrument includes selling the transaction instrument (orthe right to distribute the same) to the distributor. One skilled in theart will appreciate that the distribution centers may not be necessary.For example, the transaction instruments may be distributed directly toconsumers. The distributor may acknowledge receipt of the transactioninstruments and perform other inventory related actions via the website.

In accordance with one embodiment of the present invention, an inventorysystem associated with issuer 110 (e.g., GPP 513, FIG. 5) may beconfigured to create an inventory load file. The inventory load file maycomprise fields of information such as: selling outlet number,denomination, serial number, trust receipt number, ship date ofinventory, merchant identification, card number, card type (indicator ofco-branding, design, and product type), card currency, bundle, sleeve,case, future use fields, and/or the like. The inventory load file may,for example, be created when card manufacturer 516 sends GPP 513notification of shipment of the pre-paid cards. Furthermore, theinventory load file may be created by an existing inventory system,e.g., a Traveler's Cheque system 515, thus leveraging pre-existinginventory systems. The existing inventory system 515 may sendcommunicate a trust receipt to GPP 513. GPP 513 may then communicate theinventory load file to the web tool 550. For example, web tool 550,specifically application server 552, may be configured to check with theissuer system to see if an inventory load file is ready to be downloaded(e.g., from Stratus 511), and may download any waiting inventory loadfile. In one embodiment, the load file is stored, by database server553, in a database 554 associated with web tool 550. The inventory loadfile facilitates tracking inventory by serial number.

In addition, financial transaction instrument distribution system 100may be configured to facilitate transfer of inventory between retaillocations within a merchant.

The merchant may create a distribution hierarchy. With permission fromat least one level up on the hierarchy, for example, inventory may bere-assigned, transferred, or deleted. Thus, the web tool 550 may beconfigured to assign inventory in the inventory load file to varioussub-locations within the merchant and or facilitate transferring theinventory amongst the sub-locations. The web page may further beconfigured to generate reports for actions such as stock deletion (e.g.,for lost cards) and to create destruction certificates.

The distributor may offer (step 215) the transaction instrument toconsumers using various techniques. For example, physical devicesassociated with the transaction instruments may be stored behind acounter or otherwise kept inaccessible to customers except through themerchant's assistance. In another example, a merchant may hang packagedpre-paid open cards on a rack near a check out counter. Similarly,pre-paid open cards may be displayed on a shelf, or other suitabledisplay device. Thus, offering the transaction instrument in a consumeraccessible manner comprises any method of making physically accessibleto a consumer the acquisition of a transaction instrument. For example,a physical package or card is displayed within reach of a customer.Thus, a customer may select (i.e., physically acquire), for example, apre-denominated open card from a rack of cards, and proceed to purchasethe card along with other groceries or products selected by theconsumer. In one embodiment, the account number or cards may bedistributed via a kiosk, computer terminal, ATM (e.g., on an ATMreceipt) or over the phone. For additional information related todistribution of an account number, see for example, U.S. Ser. No.08/456,525 filed on Jun. 1, 1995 by inventor John M. Taskett andentitled METHODS AND APPARATUS FOR PROVIDING A PREPAID, REMOTE ENTRYCUSTOMER ACCOUNT, which is hereby incorporated by reference.

The distributor may distribute the transaction instrument (step 220)using various techniques. For example, the distributor may sell thetransaction instrument to customer 140. However, the distributor maygive the transaction instrument to a customer for free or even entice acustomer to obtain the transaction instrument in exchange for value. Forexample, a merchant might offer incentives, such as T-shirts, lowinterest rates, or other rewards with each credit card that isdistributed to customer 140. Other techniques for distributing thetransaction instrument may also be used.

Distributing the transaction instrument (step 220) may further comprisethe step of obtaining an identification number from the package and/ortransaction instrument. The identification number may identify or relateto the associated transaction account of the transaction instrument thatis being purchased or the transaction instrument itself. In oneexemplary embodiment, the identity of the transaction instrument may beacquired and used to populate an appropriate field of a web page. Forexample, the identification number may be a serial number that ismanually read off the package or card and typed in by hand, or that ismachine read from a bar code or magnetic stripe on the package or thecard. The serial number may be compared to a database containinginventory information. The database may be locally located with theMerchant, or may be accessed via the web page at the issuer system 110.In the web site embodiment, the identified transactionaccount/instrument may be compared to an issuer database. Furthermore,the issuer database may include distribution information including theidentity of the distributor or merchant responsible for distributing theidentified transaction instrument, the identity of the merchant'semployee or location responsible for that transaction instrument, and/orthe like. In one example, the issuer database may reflect that aparticular “till” has been assigned to Employee #3 and has 5 pre-paidcards remaining for distribution. However, this and other inventoryinformation may be stored in the web site database. The issuer databasemay further include the type of account (e.g., pre-paid, brand, and/orthe like), the stored value of the account, commission information,and/or similar information related to the transaction accountspecifically or generally. It may thus be determined that, for example,a $25 gift card is being presented for purchase. In one embodiment, thedatabase may return a price to charge for the selected card, e.g.,$27.95.

Distributing the transaction instrument (step 220) may additionallyinclude the step of sending a Fund/Init message to issuer system 110,for example, upon purchase of the transaction instrument (step 225). TheFund/Init message may include information that causes issuer system torecognize the message as representing a request to sell a selectedtransaction instrument. Issuer system 110 may process the request, andif appropriate, send an approved/authorized message to distributorsystem 130. Issuer system 110 may also update its database(s) to notethat the specified transaction instrument is sold. Issuer system mayalso update its database(s) to note that the transaction accountassociated with the specified transaction instrument is funded.Distributing the transaction instrument (step 220) may additionallyinclude the steps of receiving the approved/authorized message, andtransferring ownership of the transaction instrument to the consumer.However, at this time, the transaction account associated with thepurchased transaction instrument may be funded but not activated.

The Fund/Init message, or any similar message, may be sent from the webpage to the issuer system. For example, the merchant may send a requestfor authorization via the web page. The request may be processed (step240, below) and an ‘approved/authorized’ message from the issuer system110 may be displayed on the web site. In a further example, the web sitemay be configured to receive information regarding the financial vehicleused to purchase the transaction instrument. In other words, the website may receive information on whether cash, charge card, credit card,stored value card, loyalty card, and/or like financial devices were usedto consummate the transaction. Furthermore, in some embodiments, thecredit card or like instrument may be identified generally orspecifically by swiping the magnetic stripe, scanning a bar code, ortyping in the number manually. The web page may be configured to forwardto issuer system 110 the information relevant to the financial devicethat was used in purchasing the transaction instrument.

Moreover, in various exemplary embodiments, the website is configured toconsummate the transaction. For example, the web based interface may beconfigured to communicate with a payment processor via the internet toenable payment of the account. Thus, the web based interface may beconfigured to both distribute and sell the transaction instrument.

In some exemplary embodiments involving a third-party partner, theprimary contact with the merchant is through the third-party partner.Thus, the merchant system is suitably configured, in this case, to senda Fund/Init message to third-party partner system 120. Third-partypartner system 120, in turn recognizes the message as a request todistribute a transaction instrument, and translates the serial number(accompanying or included in the Fund/Init message) to a correspondingissuer serial number, which is forwarded to issuer system 110 as aFund/Init message. Approval/authorization of the distribution of thetransaction instrument is similarly sent to third-party partner system120 to be converted and/or conveyed back to merchant system 130.

The direct, or indirect, distribution of the transaction instrument mayfurther involve the distributor collecting information from the customer(step 221). The customer information may include, for example, thecustomer name, password, social security number, birth date, surveyinformation, loyalty program information and other personalidentification information, and/or the like. Such information may becombined with other information related to the distribution of thetransaction instrument such as, for example, the place and date of saleof the transaction instrument, the ‘value’ associated with a pre-paidcard, and/or the like. All or any portion of this combined information(“distribution information”) may be communicated to the issuer system(step 230). All, or a portion, of this distribution information may beinput manually or automatically into fields of the web page. The webbased application may be configured to communicate this transactioninstrument distribution information to issuer system 110.

In various exemplary embodiments, the distribution information istransmitted to the issuer system and it may be associated with a serialnumber and/or account number. Again, this distribution information may,in some embodiments, be communicated to issuer system 110 via the webbased interface. In one exemplary embodiment, the serial numbercomprises at least a portion of a machine readable code, such as a barcode. In another example, the serial number may be stored in a magneticstripe encoded format. The web application at distributor system 130 maybe suitably configured to recognize the codes and, based on the codes,to determine the amount that the distributor owes to the issuer. Inother exemplary embodiments, the serial number may be entered into anelectronic system manually or by other means (bar code, machine readablecode, etc.)(step 232). For example, an internet web page based systemmay be suitably configured with fields for manual or automatic entry ofa serial number as well as other information comprising the distributioninformation. The fields may, for example, be similar to fields used inconnection with distributing Travelers Cheques; however, other formatsmay also be used. The American Express “Express Check” software is oneexample of such a system. Moreover, the internet web page may besuitably configured to transmit/communicate distribution information toan issuer in other suitable formats.

The distribution information may be stored and transmitted in batches,or transmitted in substantially real time. A batch transmission (e.g.,560) of distribution information may, for example, include severaltransactions including various products, individual transactioninformation, and/or summary information. For example, a single batchtransmission may comprise the transmission of a file containing asummary of amounts the distributor owes to the issuer, the total numberof pre-paid cards sold, and distribution information specifying theserial number of the sold pre-paid cards. In another exemplaryembodiment, the distribution information is communicated to issuersystem 110 via the internet or other suitable communication systems. Theissuer receives the distribution information and may process theinformation (step 240).

Processing of the distribution information may take place through acombination of systems that may already be established at issuer system110. For example, issuer system 110 may comprise both a Travelers Chequeinfrastructure (or the like) and a transaction account infrastructure(e.g., a pre-paid card infrastructure). The Travelers Chequeinfrastructure, or more generally, the pre-existing inventory andfinancial settlement processing system, may be suitably configured toreceive and process the distribution information and to transmit data tothe transaction account infrastructure. For example, a Travelers Chequeinfrastructure may share inventory management and seller data with apre-paid card infrastructure. Thus, financial transaction instrumentdistribution system 100 may be suitably configured to leverage thefunctions and services of pre-existing Travelers Cheque, ATM, POS andtransaction account infrastructures by receiving communications througha Travelers Cheque, POS and/or ATM communication system and sharinginformation between the two infrastructures.

The web site may be further configured to facilitate preparing reportsfor the merchant. For example, a report may summarize the daystransactions, a month's transactions, and/or the like. As anotherexample, the web page may be configured to create a report thatdelineates fees on a product from the face value on the transactioninstrument. The web site may also be configured to automatically totalthe final price, for example, by adding the fees and the face value.Furthermore, the web site may facilitate a flexible fee configurationwhere various fees may apply depending on the distributor, the buyer,and/or other factors.

The web site may further be configured to facilitate reconciliation. Forexample, the website may be configured to display a ‘shiftreconciliation’ screen which is configured for receive a clerk'sphysical counts of payment methods taken in. The web site may be furtherconfigured to utilize that entry to calculate over/short of the tillbased on the transactions (sale, refund, etc) done during the shift. Theweb site may further be configured to produce a report containing thisinformation, and this report may be provided to a third-party accountingsystems or utilized in hard copy format. The web site may also beconfigured to provide a receipt for the merchant, the customer, or both.For example, the web site may be configured to create a printed receipt.In other embodiments, the web site may permit balance inquiryfunctionality, voiding of a fund or fund/activate if the transaction hasnot been settled, and/or cash out of a card having a remaining balance.Each of these transactions may, for example, utilize processes similarto those described above with regard to the Fund/Init message. In oneexemplary embodiment, a message is transmitted that requests that actionto be taken (e.g., balance inquiry, void, and/or the like). The issuerauthorization system may send a response message to the distributorsystem returning the results (e.g., account balance, an approval/declinemessage, and/or the like). Furthermore, network connectivity and websitetechnology similar to that described herein may be used to achieve thisfunctionality. In one example, the web site may be configured to makesuch functionality available for only certain product types, users, etc.In another embodiment, the web site may be configured to facilitatetracking of inventory between distribution locations and between salesclerks. The processing step may further include checking to see if theconditions of the transaction would trigger money laundering laws.

In accordance with one exemplary embodiment of the present invention,issuer system 110 may be suitably configured to leverage a TravelersCheque, POS, ATM or other financial infrastructure to process thedistribution information and/or to provide services related to thetransaction account/instrument. For example, through the TravelersCheque infrastructure, issuer system 110 may be suitably configured topay the distributor a commission for the distribution of the transactioninstrument (step 250). In accordance with one exemplary embodiment ofthe present invention, the commission payment system may be similar tothat used in paying commissions for sales of Travelers Cheques, althoughother systems may also be used.

In accordance with yet another exemplary embodiment of the presentinvention, issuer system 110 may be suitably configured to activate thetransaction instrument (step 260). In one exemplary embodiment, thetransaction instrument may be activated at the point of sale. Forexample, the web site application may be configured to send aFund/Activate message to the issuer (directly or indirectly), which maycause the transaction account, associated with the transactioninstrument, to be activated. In another exemplary embodiment, thetransaction account may be activated some time after thedistribution/sale. For example, the web site application may beconfigured to send a Fund/Init message to the issuer (directly orindirectly).

The purchaser of a pre-paid card, for example, may call a customerservice representative or an interactive voice response systemassociated with a pre-paid card infrastructure to activate the pre-paidcard. In one exemplary embodiment, if the transaction instrument hasbeen flagged as “sold”, the IVR system is suitably configured to honor arequest to immediately activate the transaction account. Thus, a newlypurchased open pre-paid card may be used sooner, encouraging consumersto purchase the cards.

In other exemplary embodiments, the Travelers Cheque/transaction accountinfrastructure(s) may be suitably configured to verify that activationis appropriate. For example, the infrastructure may be suitablyconfigured to verify that this particular card has been sold.Furthermore, the purchaser may be asked to provide the card number,their date of birth, the last four digits of their social securitynumber, and/or the like for the purposes of confirming that activationis appropriate. The infrastructure may further be suitably configured todetect fraud (e.g., detect an attempt to use a card that has not yetbeen sold), to refund or replace a lost transaction instrument, to trackproduct inventory, to know when and how much to pay sellers as acommission, and to collect from sellers for the consignment sale. Forexample, if customer 140 reports a transaction instrument as lost orstolen, the issuer may determine if that transaction instrument wassold, where it was sold, etc. and thereby ask the customers questions todetermine if the customer is entitled to a refund.

FIG. 4 illustrates an exemplary system 400 that is suitably configuredto facilitate the distribution of a transaction instrument. System 400combines an exemplary Travelers Cheque infrastructure 410 and anexemplary transaction account infrastructure 420. Various TravelersCheque infrastructures and transaction card infrastructures may be usedin system 400, and therefore the details of infrastructures 410 and 420are not explained in detail. In one exemplary embodiment, transactionaccount infrastructure 420 may be a pre-paid card infrastructuresuitably configured with an interactive voice response systemfacilitating consumer activation. Transaction account system 420 may besuitably configured to provide card numbers to a matching table and tocommunicate with the matching table, providing new functionality 430.Travelers Cheque infrastructure 410 may be suitably configured toprovide Travelers Cheque numbers and/or sales and inventory statusinformation to a matching table. Thus, the matching table may facilitatecard production and packaging. The newly produced inventory may then bepassed to an inventory shipping process within Travelers Chequeinfrastructure 410 and infrastructure 410 may, for example, facilitatethe distribution of the pre-paid cards. Various other links andcommunication of information between infrastructures 410 and 420 mayalso be used to facilitate distribution of transaction instruments.

From the issuer's perspective, in accordance with various aspects of thepresent invention, an issuer is able to facilitate the distribution oftransaction instruments. The issuer creates the transaction instruments,issues the transaction instruments to a distributor, receivesinformation back from the distributor upon distribution of thetransaction instrument, and processes the information received. Theinformation may conveniently be communicated via a web page accessibleby the distributor. The issuer funds the transaction account upon sale,and activates the transaction account via, for example, an IVR system.In one exemplary embodiment, the information is received by the issuer'sTravelers Cheque infrastructure and processed by the issuer's TravelersCheque and/or transaction account infrastructure(s). Thus, the issuerleverages one or more existing systems to distribute transactioninstruments.

From the distributor's perspective, in accordance with another aspect ofthe present invention, a distributor may distribute a transactioninstrument using existing systems and sales techniques that aretypically used to distribute merchandize in stores.

For example, the distributor may receive a shipment of a box of pre-paidopen type cards, each in an package that facilitates presenting thepre-paid cards. The packages may each contain, for example, a pre-paidcard, and each envelope may bear identifying indicia, such as a serialnumber. The serial number may facilitate, for example, tracking ofinventory.

The distributor may place the pre-paid cards on a shelf, on a rack, orsimilar display, and allow customers to self select desired products. Ifthe customer selects a gift card from the rack and presents it forpurchase, the distributor may obtain customer information and may scanthe package using the same optical scanner that is typically used forreading UPC codes to scan in the sale of other products. Suchtransaction instrument distribution information may be entered into aweb page in an automated manner or manually. The distributor may utilizea computer that can access the internet, and in one embodiment that cancommunicate with the issuer via an issuer web site. The distributor'scomputer is suitably configured to send a Fund/Init message to theissuer, and receive back an authorization. In various exemplaryembodiments of the present invention the distributor receives paymentfor the transaction. In this example, the pre-paid card is given tocustomer 140 in connection with the transaction. Distributioninformation may be batch transmitted, for example, at the end of theday. Thus, with minimal additional processes or investment intechnology, the distributor may earn commissions or realize otherincentives for distribution of additional product, e.g., a pre-paidcard.

From the customer's perspective, in accordance with yet another aspectof the present invention, a customer obtains the benefit and convenienceof obtaining a pre-paid open card through, for example, a retail mallmerchant. The transaction instrument, e.g., prepaid card, may bedisplayed in a customer accessible manner. For example, a customeraccessible manner may comprise any method of displaying a transactioninstrument (e.g. pre-paid card) where the customer can physically selectthe transaction instrument or a device representing the same. Thecustomer could also, however, obtain the pre-paid card in-person, overthe telephone, on line, and/or the like. For example, a customer mayenter a hardware store to purchase a product. At the check out stand,the customer sees a pre-paid card of a specific denomination and addsthat to the items to be purchased. The customer may optionally provideinformation, then pay for the pre-paid card. The customer may thenactivate the card by calling a number on the card. During activation,the customer may provide the purchase location or other identifyinginformation. Thus, the customer could use the card within minutes ofpurchasing the card. Furthermore, in other embodiments, the card may beactivated at the time of its sale, and the customer may begin using thecard immediately.

An exemplary pre-paid card is the Gift Card by American Express. Thisproduct allows someone to load, for example, $25, $50, $100, or $500onto a card and then give it to the gift recipient. The gift recipientmay then buy merchandise on the card at any retailer or restaurant thataccepts American Express. This exemplary Gift Card facilitates giving agift that may be used at millions of merchants in contrast to a singlestore gift certificate/card, which has limited use. This system could bealso be used with providers other than American Express and on variousfinancial instruments. Other exemplary cards may include a ‘mall card’that is valid for use in stores associated with a particular mall,association of malls, chain of affiliated stores, or a subset thereof.Furthermore, in one exemplary embodiment, the web-based interface isconfigured to facilitate loading a variable amount onto the card.

With reference now to FIG. 3, an exemplary transaction instrumentdistribution device 300 is suitably configured to facilitatedistribution of a card or an account number by a distributor.Transaction instrument distribution device 300 may include a card 310and a package 320. As discussed above, the “card” may simply be anaccount number, or an account number printed or encoded on any medium.Package 320, in accordance with exemplary embodiments, may be associatedwith card 310 when issued to the distributor.

Card 310 may include one or more physical devices used in carrying outvarious financial transactions. For example, card 310 may comprise apre-paid card, rewards card, telephone card, smart card, magnetic stripecard, radio frequency card and/or the like. In yet another exemplaryembodiment of the present invention, card 3 10 may be an electroniccoupon, voucher, speed pass, and/or other such instrument. Card 310 maybe used to pay for acquisitions, obtain access, provide identification,pay an amount, receive payment, redeem reward points and/or the like.

Card 310 may be associated with an account number/card number.Furthermore, an “account number”, “card number”, “code”, “identifier” or“loyalty number”, as used herein, includes any device, code, or otheridentifier/indicia suitably configured to allow the consumer to interactor communicate with the system, such as, for example,authorization/access code, personal identification number (PIN),Internet code, other identification code, and/or the like that isoptionally located on a rewards card, pre-paid card, telephone card,smart card, magnetic stripe card, bar code card, radio frequency cardand/or the like. The account number may be distributed and stored in anyform of plastic, electronic, magnetic, radio frequency, audio and/oroptical device capable of transmitting or downloading data from itselfto a second device.

An account number may be, for example, a sixteen-digit card number,although each card provider has its own numbering system, such as thefifteen-digit numbering system used by an exemplary loyalty system. Eachcompany's card numbers comply with that company's standardized formatsuch that the company using a sixteen-digit format may generally usefour spaced sets of numbers, as represented by the number “0000 00000000 0000”. The first five to seven digits are reserved for processingpurposes and identify the issuing bank, card type and etc. In thisexample, the sixteenth digit is used as a sum check for thesixteen-digit number. The intermediary eight-to-ten digits are used touniquely identify the customer. In addition, loyalty account numbers ofvarious types may be used.

In accordance with various exemplary embodiments of the presentinvention, serial number 330 is suitably configured to be a TravelersCheque type number or a portion thereof. Thus, the serial number may beused in a system that otherwise is suitably configured for the sale ofTravelers Cheques. Thus, the serialized number may be machine read fromthe surface of, for example, package 320, and distribution informationmay be conveyed to issuing system 110.

Package 320 may comprise any suitable device that facilitates accessiblyoffering the transaction instrument to a consumer. For example, package320 may simply comprise a peel off hook 350 attached to a card or anenvelope. Furthermore, package 320 may comprise an envelope that whollyor partially surrounds a transaction instrument, such as a card. In oneembodiment, package 320 conceals the account number associated withtransaction instrument 310. In further embodiments, package 320 maycomprise one or more windows for viewing or reading a bar code ormagnetic strip on a card without the need to remove the card from theenvelope. Moreover, the revealed portion may include or correspond tothe serial number. Thus, the card may be packaged in a manner that theserial number is exposed and/or readable even when the card is packaged.As illustrated in FIG. 3, in one exemplary embodiment, package 320 mayalso have indicia, e.g., a serial number, in the form of a bar code ormagnetic strip, on the package itself. With regard to embodimentslacking a physical instrument, package 130 may be associated with atransaction account, for example, by providing a tangible objectcontaining a transaction account number.

It is noted that the serial number may be the identification number ofthe third-party partner or of the issuer. In one embodiment, the variousprocesses may include a user facilitating the input of information intoa computer system. The information may be inputted via keypad, magneticstripe, smart card, electronic pointer, touch pad and/or the like, intoa user computer, POS terminal, kiosk, and/or ATM terminal. Theinformation may be transmitted via any network.

In accordance with various exemplary embodiments of the invention, areverse inventory management system is configured to ‘locate’ a group offinancial transaction instruments after at least one of the financialtransaction instruments in that group has been sold. Although primarilydescribed herein in terms of financial transaction instruments, and moreparticularly in terms of financial transaction cards (“cards”), thedescription herein is equally applicable to other financial transactioninstruments and to account numbers associated with financial transactionaccounts.

In this regard, a retail sale or retail distribution refers to thedistribution to the end user of the financial transaction instrument asopposed to the distribution or transfer of the financial transactioninstrument down through the distribution chain (e.g., from the issuerdown to the distributor who provides the financial transactioninstrument to the end user). In addition, a distributor may havesub-entities to which financial transaction instruments are distributedand who may distribute the cards. For example, inventory may beassigned, in bundles, to various clerks, kiosks, departments, and/orlike entities within a mall or department store.

As mentioned above, distributor system 130 may communicate informationwith issuer system 110 (directly or indirectly). In one exemplaryembodiment, the information communicated includes the consumer name, anaccount number, a sequential number, the date of distribution of thetransaction instrument, the time of distribution, the place ofdistribution, the name of the sales clerk, the entity responsible forthe distribution, the type of transaction instrument distributed, and/orthe like. The communicated information may be useful for reversetracking of inventory as described further herein.

In general, an exemplary method comprises the steps of producing thecards, grouping a number of cards, associating the cards with each otherand/or the group, keeping the card group together during the process ofdistributing the card groups to the merchants, distributing at least oneof the cards in the card group, and recording in inventory the locationof the remaining cards of that group after a card in that group is firstdistributed.

In accordance with another exemplary embodiment, and with reference toFIG. 6, a reverse inventory method 600 may comprise the steps ofproducing financial transaction instruments, physically grouping morethan one financial transaction instruments (step 630), distributing thegroup of financial transaction instruments (step 640), associating thegrouped financial transaction instruments with each other (step 650),receiving information related to the distribution of a financialtransaction instrument (step 660), and determining the location of otherfinancial transaction instruments that are in the same group as thefinancial transaction instrument that was distributed (step 670).

Distribution of financial transaction instruments includes thedistribution of account numbers, which are associated with financialtransaction accounts. For example, an account number may be written on apaper that is distributed and later purchased. -Although the inventioncontemplates all forms of distribution of financial transactioninstruments and account numbers, for simplicity, an exemplary embodimentof the invention is described herein in terms of a distribution of apre-paid card or a credit/charge card (a “card”).

The issuer of a card may produce the card and/or packaging associatedwith the card. This may be accomplished, for example, throughthird-party production vendors (e.g., Oberthur Card Systems). The cardsmay be individually packaged, although in other embodiments, one, two,or more cards may be packaged for retail sale together (‘retail salepackage’). However, in various exemplary embodiments, the retail salepackage comprises just the card itself. In one exemplary embodiment, acard may be placed in a cardboard or plastic container that isconfigured to securely hold the card and/or conceal all or portions ofthe card. In other embodiments, a hook may be removeably attached to thecard. Furthermore, many other packaging methods may be used to preparethe cards for distribution.

Similarly, other types of financial transaction instruments may besuitably packaged for retail sale. For example, an account numberassociated with a financial transaction account may, for example, beprinted on a paper or other object that is packaged for retail sale. Asdescribed in greater detail herein, the financial transactioninstruments and/or retail packages may be associated with identifiers(steps 610 and 620). This association may be partially or completelyproduced by the production vendor, the issuer system, and/or bothsystems working together.

The individual retail sales package is configured to be uniquelyidentifiable. Thus, a unique identifier is associated with each retailsales package. The unique identifier may be formed of numbers, letters,symbols, and/or the like. In other exemplary embodiments, the uniqueidentifier is a serial number. For example, the serial numbers may besequential numbers within each distribution group of individual retailsales packages. However, it is noted that in some embodiments, theunique identifier may be a random number associated with the retailsales package. Typically, the unique identifier is a separate identifierfrom the account number associated with the financial transactionaccount, financial transaction instrument, or debit/credit card.However, in one embodiment, the unique identifier is the account number.

For simplicity, the unique identifier is described herein as beingassociated with the card. However, the unique identifier may beassociated with at least one of the individual retail sales package,with the card, or other packaged object. Furthermore, the uniqueidentifier (or any other identifier discussed herein) may be in the formof a printed indicia, bar code, electronic identifier (e.g., on a smartcard, coded in a transponder), stored on a magnetic stripe, and/or thelike. In other embodiments, the unique identifier is printed on the cardor package. In accordance with another exemplary embodiment of theinvention, a unique group identifier may be associated with eachdistribution group (as described herein).

In one exemplary embodiment, the cards are each configured to have aserial number. For example, the cards may have a serial number printedon the surface of the card. In another example, the serial number may beincorporated into the magnetic stripe or stored in a machine readablemanner on the card. Furthermore, the serial number may be a sequentialnumber such as, for example, Traveler's Cheque numbers. The uniqueidentifier, account number, unique group identifier, number of cards inthe group, and/or like information may be stored in a database, look uptable, and or the like.

In accordance with one exemplary embodiment of the invention, theindividual retail sale package is grouped together with other individualretail sale packages. The groups (or bundles) may comprise two or morepackages. Although any number of individual retail sale packages maycomprise a group of cards, in one embodiment, 25 individual retail salepackages are packaged together to form a group (“distribution group”).Moreover, the number of retail sale packages in a bundle may vary frombundle to bundle. The number of cards in a bundle may be varied, forexample to suit a specific retailer's requirements. Furthermore, thetype of card or package may vary within the bundle or from bundle tobundle. For example, one bundle may contain a variety of packages eachholding one, two, or six cards. In another example, one bundle maycontain retail packages each containing one card and another bundle maycontain retail packages each containing two cards. Similarly, thevaluation of prepaid cards and other similar types of information mayvary from package to package or from bundle to bundle, and/or the like.

The production vendor may be configured to ship a bundle (distributiongroup) of cards directly to issuer 110, or to third-party distributionvendor 120. System 100 may further be configured to transfer/distributethe bundles through a distribution chain to the retail distributor. Withmomentary reference to FIG. 7, an exemplary distribution chain isillustrated as having a production vendor 710, a distribution unit 720,a sub-distribution unit 722, a sub-sub-distribution unit 724, a retaildistribution center 734, and stores 730. In accordance with variousexemplary embodiments of the invention, issuer 110, third-partydistribution vendor 120, distribution center 734, and/or a combinationof these entities may transfer/distribute the bundles/groups through adistribution chain to retailers, stores, merchants, and/or the like(“retailers”). One exemplary third party distribution vendor is Incomm.The distribution vendor(s) may transfer/distribute the card bundlesintact through out the supply chain/stages of distribution to retailers.

For example, production vendor 710 may ship several bundles todistribution unit 720 which may in turn ship a portion of those bundlesto sub-distribution units 722. Sub-distribution unit 722 maytransfer/distribute a portion of the bundles it receives tosub-sub-distribution unit 724. Any of these distribution entities (e.g.,710, 720, 722, and/or 724) may be configured to transfer/distribute aportion of the bundles they posses to stores or to a retail distributioncenter 734 related to stores 730. Although described herein as a store,the store may be any entity as described with respect to distributionsystem 130 and merchants herein.

Upon receipt of a bundle of cards at a retail selling location, in oneexemplary embodiment, the bundle is opened and the individual retailpackages are displayed via merchandise stands, racks, counters, and/orthe like, for distribution to consumers. In yet another embodiment, thecard bundles received by a retailer may be transferred/assigned, intact,to a particular department, check out stand, sub-entity, kiosk,employee, and/or the like associated with the retailer. In that example,upon reaching the location associated with the retailer, the bundle maybe opened and the individual retail packages may be offered tocustomers. For example, a store may transfer intact bundles toparticular locations 731 within the store, to specific clerks 732 withinthe store, or to managers/assistant managers (e.g., 733 and 734) withinthe store. The managers/assistant managers may further transfer thebundles. Thus, identifying the location of a financial transactionaccount/retail sale package may include determining the physicallocation of the retail sales package and/or card. Furthermore,identifying the location of a financial transaction account/retail salepackage may include identifying the name of the store, theidentification of the clerk, the identification of the manager/assistantmanager, the department, the point-of-sale terminal, the building, thecountry, and/or the entity responsible for the retail distribution ofthe financial transaction account, and/or in possession thereof.

Typically, the individual retail packages are sold to the consumers.However, as described herein, the packages may be given away aspromotional devices, or may be distributed to consumers in other ways.Furthermore, as described herein, an individual retail sale package maybe offered to the consumer in a publicly accessible manner, for example,in high foot traffic areas of the store, and/or within reach of thecustomers. In other examples, the card is held behind the customerservice desk.

In various embodiments, the financial transaction instruments are openfinancial transaction instruments. As described herein, the ability totrack these instruments to the point of sale/point of distribution tocustomers may facilitate enhanced security and fraud prevention.Furthermore, the ability to track these cards may facilitate re-claim ofexpired/expiring cards. Thus, the methods and systems for retroactivelytracking financial transaction instruments may facilitate providingthese instruments to customers in a customer accessible environment, andmay thus enhance the distribution of the financial transactioninstruments.

When an individual retail package is sold/distributed to a customer, orduring the process thereof, the unique identification number associatedwith that individual retail package is communicated to the issuer. Thisinformation may be communicated directly to issuer 110, or by way ofintermediate processing. For example, third-party distribution partner120 may receive the information and pass the information along to theissuer. In one example, a serial number associated with the individualretail package may be communicated to third-party distribution partner120, which may be configured to translate and/or pass that informationalong to issuer 110 (step 660). This information may be communicated,for example, with the reconciliation file, as a batch process, and/orthe like.

Based on this unique identification number, and or other informationthat is commonly provided with such communications/reconciliation files,the reverse inventory management system may be configured to determinethe location of other the cards associated with that the distributedcard's group.

Reverse inventory management system 100 may also be configured todetermine whether a card is sold or unsold, at a particular retailer, ata particular sub-entity associated with that retailer, and/or the like(“inventory status”). Reverse inventory management system 100 may alsobe configured to identify all of the individual retail packages (or allof the remaining un-distributed individual retail packages) that areassociated with the bundle to which one unique identification numberbelonged. Thus, the reverse inventory management system is based on thedistribution of at least one card, out of a group of cards, and theassumption that all other cards associated with the same group as thatone card are at the same location.

Information communicated to an issuer indicating that one card has beensold (and the location of that sale) may be used to identify all othercards that were also in that bundle. For example, each card's uniqueidentification number may be associated with the unique ID of everyother card, for example in a database/look-Lip table. By searching thedatabase using the unique ID of the card first sold of a bundle ofcards, the system may determine/identify the unique ID numbers of all ofthe cards that are associated with that bundle. It may be assumed thateach of the cards in that bundle, or each of the cards remaining in thatbundle, are at that location. In this manner, the inventory dataassociated with of each card may be updated to reflect the inventorystatus (e.g., location) of that card.

In another exemplary embodiment, a bundle identifier may beelectronically associated with each serial numbered card. Thus, when onecard is sold, the serial number of the sold card can be used in adatabase/look-up table to identify the bundle of which it was a part,and then that bundle identifier can be used to look up all the cardserial numbers that were also associated with that bundle.

In yet another exemplary embodiment, a sequential serial number may beassociated with each card in a group of, for example, 10 cards. In thisexample, the number of cards in the group and the starting serial numberfor that group are stored in a database. Therefore, when a card is sold,the system is configured to determine to which group the sold cardbelongs. For example, when the first card in the group is sold, thecard's unique identification number is identical to an identificationnumber in a database or look up table. Otherwise, the sold card uniqueidentification number may be within 10 of the first number of the group.For example, the system may add or subtract any number between 1 and 10from the identification number, then compare the result to anidentification number in the table. When a card of that group is firstsold, the system may update the record of each card to reflect itsinventory status. In one embodiment, the system may update theapplicable group's inventory status.

With sequential numbered cards, it may be convenient to only store theserial number of the first card in the bundle and the number of cards inthe bundle. Thus, in yet another exemplary embodiment, the uniqueidentification number may correspond to a unique group ID number and thesystem is configured to determine the group ID number based on theunique ID number of the first sold card. The group ID number is thenupdated to reflect the inventory status of the group. The location ofindividual cards may be determined by reference to the location of itscorresponding group. Furthermore, other methods may also be used whereinthe distribution of one card in a group of cards makes possible trackingand inventory functions with respect to all of the other cards in itsgroup.

As described herein, Travelers' Cheque systems or other pre-existingserial number based inventory systems, and other transaction instrumentsystems may already be configured to perform inventory functions. Theutility of these systems may be leveraged by providing the abovedetermined location information to these pre-existing inventory systems.

In accordance with various exemplary embodiments, each time a card issold, the inventory status may be updated. Thus, the system may beconfigured to track changes in the inventory status (“dynamic inventorytracking”). For example, the system may be programmed to alert theissuer if part of a group of cards is distributed by one retailer andthen part of the group is distributed by another retailer. The systemmay also be configured to record the location of each card sold forinventory and fraud prevention reasons. Thus, the system is configuredto perform tracking of specific serialized inventory down to the storelevel or lower for purpose of loss control and inventory management(obsolete product recall, changing terms and conditions, expiredproduct, etc.) In addition, system 100 may be configured to modify thelocation of all the remaining cards/retail sale packages. In thismanner, if inventory moves from one location to another, the inventorystatus may be updated.

One of the benefits of the invention is that it may tend to increase anissuer's prepaid card business. The inability to track and performinventory management on cards may be one barrier to distributing theproduct in open retail environments with enormous foot traffic and salespotential. The reverse inventory management system may also facilitatedetailed tracking of specific serialized prepaid cards down to thespecific selling location level for purposes of loss control andinventory management. Other benefits may include the lowering ofoperating expenses. For example, reverse inventory management processesmay reduce fraud losses and operational costs related to inventorymanagement. The reverse inventory management system may increase thequantity/quality or performance of the issuer's existing services. Forexample, the reverse inventory management system may improve the abilityfor the issuer to service the needs of its selling partners and its endcustomers for these products. The reverse inventory management systemmay also facilitate selling of cards through a check-out lane andcontrolling/reducing associated losses and costs. In addition, thereverse inventory management systems and methods may be configured toleverage pre-existing travelers Cheque inventory systems and/or otherserial number based pre-existing inventory systems.

Furthermore, the reverse inventory management system may be advantageousto retailers because in some cases, fraud losses on unsold/inactivecards presented and honored under floor limits at the acceptingmerchants can be traced back and charged to fraud at the originalstocking location. In addition, third party sellers may be able toreduce the amount of additional cost and effort involved to meet issuerrequirements for tracking and managing inventory. The reverse inventorymanagement system may facilitate inventory management without additionalprocess or systems at the distribution vendors or at the retail level.Furthermore, it may facilitate integration of shipping and receivingfinancial transaction products and similar products in order to reducehandling and merchandising overhead.

Moreover, the reverse inventory management system may be advantageous tocustomers. For example, customers that have accidentally walked awayfrom the retail selling location without completing the salestransaction for their card can be directed back to the appropriateoriginal stocking location to remedy the oversight.

The present invention may be described herein in terms of functionalblock components, optional selections and/or various processing steps.It should be appreciated that such functional blocks may be realized byany number of hardware and/or software components suitably configured toperform the specified functions. For example, the present invention mayemploy various integrated circuit components, e.g., memory elements,processing elements, logic elements, look-up tables, and/or the like,which may carry out a variety of functions under the control of one ormore microprocessors or other control devices. Similarly, the softwareelements of the present invention may be implemented with anyprogramming or scripting language such as C, C++, Java, COBOL,assembler, PERL, Visual Basic, SQL Stored Procedures, extensible markuplanguage (XML), with the various algorithms being implemented with anycombination of data structures, objects, processes, routines or otherprogramming elements. Further, it should be noted that the presentinvention may employ any number of conventional techniques for datatransmission, messaging, data processing, network control, and/or thelike. Still further, the invention could be used to detect or preventsecurity issues with a client-side scripting language, such asJavaScript, VBScript or the like. For a basic introduction ofcryptography and network security, the following may be helpfulreferences: (1) “Applied Cryptography: Protocols, Algorithms, And SourceCode In C,” by Bruce Schneier, published by John Wiley & Sons (secondedition, 1996); (2) “Java Cryptography” by Jonathan Knudson, publishedby O'Reilly & Associates (1998); (3) “Cryptography & Network Security:Principles & Practice” by Mayiam Stalling, published by Prentice Hall;all of which are hereby incorporated by reference.

It should be appreciated that the particular implementations shown anddescribed herein are illustrative of the invention and its best mode andare not intended to otherwise limit the scope of the present inventionin any way. Indeed, for the sake of brevity, conventional datanetworking, application development and other functional aspects of thesystems (and components of the individual operating components of thesystems) may not be described in detail herein. It should be noted thatmany alternative or additional functional relationships or physicalconnections might be present in a practical transaction instrumentdistribution system.

As may be appreciated by one of ordinary skill in the art, the presentinvention may be embodied as a method, a data processing system, adevice for data processing, a financial transaction instrument, and/or acomputer program product. Accordingly, the present invention may takethe form of an entirely software embodiment, an entirely hardwareembodiment, or an embodiment combining aspects of both software andhardware or other physical devices. Furthermore, the present inventionmay take the form of a computer program product on a computer-readablestorage medium having computer-readable program code means embodied inthe storage medium. Any suitable computer-readable storage medium may beutilized, including hard disks, CD-ROM, optical storage devices,magnetic storage devices, and/or the like.

These computer program instructions may also be stored in acomputer-readable memory that may direct a computer or otherprogrammable data processing apparatus to function in a particularmanner, such that the instructions stored in the computer-readablememory produce an article of manufacture including instruction meanswhich implement functions of flowchart block or blocks. The computerprogram instructions may also be loaded onto a computer or otherprogrammable data processing apparatus to cause a series of operationalsteps to be performed on the computer or other programmable apparatus toproduce a computer-implemented process such that the instructions whichexecute on the computer or other programmable apparatus include stepsfor implementing the functions specified in the flowchart block orblocks.

In the foregoing specification, the invention has been described withreference to specific embodiments. However, it may be appreciated thatvarious modifications and changes may be made without departing from thescope of the present invention. The specification and figures are to beregarded in an illustrative manner, rather than a restrictive one, andall such modifications are intended to be included within the scope ofpresent invention. Accordingly, the scope of the invention should bedetermined by the appended claims and their legal equivalents, ratherthan by the examples given above. For example, the steps recited in anyof the method or process claims may be executed in any order and are notlimited to the order presented.

Benefits, other advantages, and solutions to problems have beendescribed above with regard to specific embodiments. However, thebenefits, advantages, solutions to problems, and any element(s) that maycause any benefit, advantage, or solution to occur or become morepronounced are not to be construed as critical, required, or essentialfeatures or elements of any or all the claims. As used herein, the terms“comprises.”, “comprising”, or any other variation thereof, are intendedto cover a non-exclusive inclusion, such that a process, method,article, or apparatus that comprises a list of elements does not includeonly those elements but may include other elements not expressly listedor inherent to such process, method, article, or apparatus. Further, noelement described herein is required for the practice of the inventionunless expressly described as “essential” or “critical”.

1. A method for distributing an open transaction instrument to aconsumer, comprising: accessing, at a point of sale of the opentransaction instrument, a browser-based interface that is configured tofacilitate distribution of the open transaction instrument inassociation with purchase of the open transaction instrument by theconsumer, wherein the open transaction instrument is offered at thepoint of sale, and wherein a card number is associated with the opentransaction instrument and a transaction account; entering transactioninformation into the browser-based interface, wherein the browser-basedinterface is further configured to communicate the transactioninformation for authorization; receiving, via the browser-basedinterface, authorization to vend the open transaction instrument; andvending the open transaction instrument to the consumer.
 2. The methodof claim 1, wherein at least one of the accessing, entering andreceiving steps is performed by at least one of: a consumer servicerepresentative and a consumer.
 3. The method of claim 1, wherein theopen transaction instrument includes a plurality of open transactioninstruments having different card numbers.
 4. The method of claim 1,wherein the entering step comprises entering transaction informationinto the browser-based interface for purchasing a plurality of opentransaction instruments having different card numbers and vending theplurality of open transaction instruments to a single consumer.
 5. Themethod of claim 1, wherein the open transaction instrument comprises atleast one of: a pre-paid card, a gift card, a charge card, a phone card,a credit card, a debit card, a mall card, a variable load card, a fixedload card, a smart card, an RFID device, a paper receipt, and a signal.6. The method of claim 1, wherein the vending step comprisestransmitting a signal containing the card number to a device associatedwith the consumer.
 7. The method of claim 1, wherein the card number isdisplayed on the open transaction instrument by at least one of:embossing and printing the card number on the open transactioninstrument.
 8. The method of claim 1, wherein a tracking code isincluded on at least one of: the open transaction instrument and asleeve associated with the open transaction instrument, wherein thetracking code is included in a format including at least one of: anumerical format, a code format, bar code format, radio frequency formatand magnetic stripe format.
 9. The method of claim 1, wherein the opentransaction instrument is configured to be generally accepted by atleast one of: merchants that are not directly affiliated with eachother, merchants within one shopping mall, merchants within one paymentnetwork, merchants within one country, and merchants within onegeographic region.
 10. The method of claim 1, wherein the opentransaction instrument is configured with restrictions.
 11. The methodof claim 1, wherein the open transaction instrument is configured withrestrictions comprising at least one of: geographic restrictions anddevice restrictions.
 12. The method of claim 1, wherein the enteringstep further comprises entering the transaction information via a pointof sale device for processing a payment for the open transactioninstrument.
 13. The method of claim 1, wherein the entering step furthercomprises entering transaction information comprising at least one of:payment data, seller data, the card number and a load amount to beloaded to the open transaction instrument.
 14. The method of claim 1,wherein the entering step comprises entering payment data related to atleast one of: cash, transaction account information, loyalty points andcash equivalent value.
 15. The method of claim 1, wherein the enteringstep further comprises entering transaction information comprisingpayment data, wherein the payment data comprises at least one of:account code of a payment account, charged amount, issuer information,security code, expiration date, cash equivalent value, demographic data,and loyalty point value.
 16. The method of claim 1, wherein the enteringstep further comprises entering transaction information comprising aload amount, wherein the load amount comprises at least one of: aninitial load amount, reload amount, cash equivalent value, loyalty pointvalue, information to transfer value from another account andinformation to transfer value to another account.
 17. The method ofclaim 1, wherein the browser-based interface is further configured tocommunicate the transaction information to the issuer via anintermediary.
 18. The method of claim 1, wherein receiving authorizationfurther comprises receiving a signal that indicates that the opentransaction instrument is at least one of: in stock, valid for sale,payment authorization amount is equivalent to a load amount, and loadinformation is associated with the card number.
 19. The method of claim1, further comprising performing at least one of the following steps viathe browser-based interface: reconciling, generating reports, producingreceipts, cashing out of the open transaction instruments at a point ofsale, voiding the open transaction instruments when a transaction is notsettled, submitting a balance inquiry, and replacing lost opentransaction instruments.
 20. The method of claim 1, wherein the enteringstep comprises receiving transaction information from at least one of:manual entry, a database, a digital wallet, a transaction instrumentreader, a bar code scanner, an RFID reader and a biometric sensor. 21.The method of claim 1, further comprising moving the card number from anelectronic vault to an electronic till to allow entry of the transactioninformation related to the card number.
 22. The method of claim 1,further comprising moving the card number from an electronic vaultassociated with a parent entity to an electronic till associated with anaffiliate of the parent entity, to allow entry of the transactioninformation related to the card number.
 23. The method of claim 1,wherein the step of receiving authorization comprises causing thetransaction account to be funded and activated.